El Paso Debt Settlement

El Paso, Texas downtown skyline

El Paso debt settlement is a method of relieving debt that thousands of consumers throughout Texas have used to clear their names of unsecured debts such as credit cards and personal loans. Settlement is available in many cities of Texas such as El Paso, Dallas, and Houston. If you feel that you’re in over your head in monthly payments, settlement or negotiation could be an option for you to help ease the burden and get you back track financially.

El Paso Debt Statistics & Laws

The city of El Paso owes over $1.5 billion dollars in debt. Its assets fall around $770 million short of being able to pay off the debt, leaving each taxpayer with a debt burden of $3,900 if they were made responsible for bridging the gap. Only 27 other cities across America have a similar debt profile.

Households average nearly $43,500 in annual household income in El Paso, but residents in the city have an average credit score that puts them in the top 10 worst cities in the country for credit.

The Statute of Limitations in El Paso, Texas is 4 years, meaning that a creditor has 4 years to collect on a debt before it is no longer legally allowed to continue to go after repayment.

Five Methods for Relieving Debt in El Paso, Texas

In Texas, there are many options that debtors have for reducing their interest rates and even lessening the principal debt balance. Here are 5 of the most commonly used methods of debt relief in El Paso.

Balance Transfer Credit Cards in El Paso

Balance transfer credit cards offer debtors the option of moving their unsecured debts to a loan with lower-interest. If a debtor can qualify for one of these cards, they can use that credit to pay off their existing unsecured debts, leaving them with a monthly payment that can be substantially lower due to reduced interest rates. The main drawback with balance transfer cards is that they can be difficult to qualify for without an average to good credit score, a requirement which many taxpayers in deep debt may not be able to meet.

El Paso Debt Management or Credit Counseling Programs

With a debt management or credit counseling program in El Paso, a debtor can work an agency to organize their monthly payments and possibly get the interest rates reduced. With a debt management program, a single monthly payment is made to the counseling agency who then distributes the payments amongst creditors. Credit counseling agencies may also be able to negotiate lower interest rates with creditors during this process. The biggest downside with debt management is that it can’t reduce the principal balance of a debt.

El Paso Debt Consolidation Loans

Debt Consolidation is a form of debt relief that involves taking out a larger loan with a low-interest rate to repay other unsecured debts that have higher interest rates. With a lower interest rate, a debtor will lose less capital to interest throughout the duration of the repayment. Consolidation is also beneficial in that it can help organize your debts by combining many or all of them into a single monthly payment.

Similarly to balance transfer cards and credit counseling, the disadvantage with consolidation is that it only treats burden of interest and cannot reduce the principal balance of a debt.

Debt Settlement or Debt Negotiation in El Paso

El Paso Debt Settlement is different from both consolidation and counseling in that it can work to reduce the principal debt balance in addition to negotiating lower interest rates. So, a settlement can reduce the amount that a debtor has to pay in interest and lower the original debt that they were trying to repay by up to 50%.

Debt Settlement can be one of the quickest paths to attaining financial freedom from debt. However, in some cases, creditors may simply not be willing to negotiate a debt anymore, leaving a debtor with little to no other options other than bankruptcy.

Filing for Bankruptcy

When a consumer files for bankruptcy all collection efforts stop, but a debtor may still have to repay all or some of their debt depending on which type of bankruptcy is filed. Bankruptcy often does more damage to your credit score than settlement does as well, but it can be a viable option for those with creditors who are past the point of negotiation.

How Debt Settlement Works in El Paso

Debt settlement is a form of debt relief that involves negotiating a lump sum payment with creditors to repay a debt. This payment can amount to much less than the original amount owed with debtors only having to repay 40-50% of the principal debt in the best-case scenarios. Once the creditor has received the full payment, the debt is considered to be repaid.

Generally, creditors will agree to negotiate a settlement rather than losing the entire debt in a bankruptcy proceeding.

Benefits of Negotiating Debt in El Paso with New Era

  • No upfront or add-on fees. Debt settlement is a service that can only be legally charged for after the debt has been settled. Companies that charge a debtor for anything before this are breaking the law. With New Era, you only pay a fee after the debt has been fully settled.
  • All-in-one service. Many settlement agencies are only sales groups that pass their clients along to another company to handle the settlement. This means that multiple parties are getting access to your financial information and the sales group may have little or no control how the settlement turns out in the end. At New Era, we handle cases from beginning to end.
  • Experienced settlement firm. New Era Debt Solutions has over 20 years of experience and has settled over $275,000,000 in debt for our clients. Over the years, our firm has built a track record for success because of the relationships we’ve built with creditors which allow for the best settlement deals to be reached. Check out our client testimonials to get an idea of what it’s like to work with our programs.

Start Your Journey to Freedom from Debt in El Paso Today

If you’re in need of debt help in Texas, contact New Era for a free analysis with a debt expert. Let us show you how much time and money you can save with the right type of debt relief solution for your financial needs. Contact us at New Era Debt Solutions to figure out your options for debt relief in El Paso.